OCC: Internal Audits Need Improvement

WASHINGTON - The Office of the Comptroller of the Currency warned national banks Friday that lax internal controls, such as ineffective audits, are contributing to losses and even failures.

"Recent examinations have identified an increasing number of audit and internal control deficiencies at many national banks," according to an advisory letter from the agency to bank chief executives, directors, and examiners. "Some of these deficiencies have caused significant operating losses and led to bank failures."